Analysis of Innovation and Commercialization at Madgex Ltd. Report

This report analyzes the innovation and commercialization strategies of Madgex Ltd., a small IT sector business. It defines innovation and its importance, particularly in comparison to invention, and examines how organizational vision, leadership, culture, and teamwork shape innovation within the company. The report delves into the 4Ps of innovation (Paradigm, Product, Process, and Position) and the application of an innovation funnel to shape innovative ideas. It further explores frugal innovation developments, providing examples of its implementation. Finally, the report discusses the importance of the commercial funnel and the application of new product development in the context of innovation commercialization, offering a comprehensive overview of Madgex Ltd.'s approach to these critical business functions.

INNOVATION

INTRODUCTION
Innovation can be define as the translating an idea or invention into goods and services
that create value for customers in which they pay effectiveness. In this regard, company develop
successful operations and functions to satisfy needs and expectations for customer attraction.
Therefore, it generates more effective work to focus on being innovative and perform several
targets as well (Mollick and Robb, 2016). It increases environmental performance to focus on the
better products and services. Present study based on Madgex Ltd. which is small sector business
that deals for IT sector operations and functions in creative manner. There software is utilised by
many of the most successful media brands in the world and provides the full range of tools
required to run a profitable online recruitment business. A range of SaaS technologies are
provided by them that allow their clients to run an outstanding job board platform. For gaining
insight information of the present study, it covers innovation and determines its importance in
the chosen business. Furthermore, it includes 4ps of innovation and use of innovation funnel to
shape innovative ideas. At last, it includes different tools that opt by organisation to develop,
retain and protect knowledge and intellectual property.
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P1 Innovation and determines its importance to organisation in comparison with invention
Innovation can be defines as the simple way to develop new idea, device and method. It
is often and viewed as the application of better solution to meet with new requirements. In
Madgex Ltd. Mainly it is implemented for unarticulated needs or existing market needs.
Therefore, action and process consider to focus on the desired level of efficiency (Datta,
Mukherjee and Jessup, 2015).
Importance of innovation
 Innovation plays vital part at workplace because it provides edge to penetrate the market
faster and create better connection in developing markets. It leads to perform better
opportunities in different areas of the nations.
 In Madgex Ltd. Innovation assists to develop original concepts with giving innovator
proactive, confident attitude to take risks and get things done in appropriate manner.
 When the organisation has innovative culture, it grows functions and operations easily
and despite fact in creative process. With tried and tested methods, information can be
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reliable to develop new things with appropriate experiment (Jano, Janor and Shaaban,
2014).
 Furthermore, innovation also important for the chosen business to deal with market
competition. Hence, strong demand is major drive that determinant productivity for
products and services to include new process and business systems.
Differences between innovation and invention
Basis Innovation Invention
Meaning Innovation can be define as
improvement or makes
significant contribution in
existing products and services.
On the other hand, invention
consider creation of a product
or introduction of process for
the first time (Datta,
Mukherjee and Jessup, 2015).
Easy or hard Innovation easily implemented
in existing products and
services of Madgex Ltd.
However, in respect to
implement innovation manager
need to take more research to
implement single device.
Focus Innovation focus on attain
competitive advantages in the
chosen business.
Beside this, invention consider
to focus on the new customer
attraction those are benefit
from invention.
Skills In order to consider
innovation, set of marketing,
technical and strategic skills
required (Fini, Rasmussen and
Wiklund, 2018).
On the other hand, in invention
scientific skills required.
Concerned with Innovation concerned with
combination of various
products and process.
However, invention in Madgex
Ltd. Concerned with single
product or process.
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P2 Presenting how organizational vision, leadership, culture or teamwork can shape innovation
Vision: Madgex Ltd vision is to help their clients and meet the goals by providing the
best services to their customers. Company also provide a wide range of SaaS technology and also
support their services in order to operate an outstanding job board platform. The company also
wants to establish its branches in most successful media brands and provide full range of tools
which are needed to run a profitable online recruitment business (Ke and et.al., 2016). Further
Madgex Ltd also provide innovative and intuitive platform in order to get best result for the job
seeking users.
Leadership: It is a method which help to lead a company to achieve the goal of a
company. There are different types of leadership style such as autocratic, democratic and
participative which are best fitted for the leader of Madgex Ltd. For the company, participative
leadership style is best suited for the company because it keep involving the decision of their
employees. So that employees of a company feel that they are also important for their company
(Tanev, Rasmussen and Zijdemans, 2015).
Culture: Organizational culture is the sum of all values, norms and the attitudes of the
employees which are preserve for a company in order to do the things in better way Hence it
shows that the culture is definitely help to shape up the innovation and moreover, the culture
might be shaped by the countries values as well as attitudes which might be decreases the
differences between culture (Union, 2014). For example, the working culture of Madgex Ltd is
so adoptable where the company easily adopt their new innovative ideas.
Teamwork: It is a dynamic concept which helps to solve a problem and complete the
entire work in specific time period. The teamwork will definitely help to complete the goals of a
company in prescribe time and the manager of a quoted company has a team who perform the
entire required task in order to commercialization and innovation of products. Moreover, if these
team perform their work according to the assigned work then they will also help to achieve the
goals of a company. Through new and innovative ideas the company can easily achieve their
objectives and expand its current business (Drucker, 2014). Therefore, team work will help to
formulate the process of Madgex Ltd in order to innovation and commercialization.
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P3 4 P's of innovation and also use of innovation funnel to examine and shape innovative idea.
The 4P's of innovation mix which are used by Madgex Ltd in order to produce the best
output for their company are as follows:
Paradigm: This is planned procedure in which the company deal with challenges to take
innovation and creativity. If Madgex has to innovate new service such as it wants to introduce
new product service in the terms of customers relationship which help them to expand their
business. In order to face up this challenge, the company has to develop a plan which help to
solve the problem related to fake calls or time service.
Product : this is the another p of innovation which is very important and necessary
which will be valuable to the organisation, if it able to add value to the organisation. It will be
more valuable to the organisation (Drucker, 2014). If the new launching and new developing
ideas. Company needs to make innovative product. Such as Madgez launching new software
services for their customer solutions. It helps to explain the more enlarging and goal oriented
form of different task. Product is the main stream through which all innovation and
commercialization process has been done (Resnick and et.al., 2016.
Process : In this aspect, process has been undertaken to provide products to customers. It
is important consideration to deliver long term process to gain success and reduce delivery of
time. Apart from that, in this task process includes all steps of delivering products to the end
consumer.
Position : Is the goals of the specific innovation and commercialisation process, that
helps to implement the overall process to achieve the set objectives and position (Mazzucotelli,
and et.al., 2018). Madgez wanted to achieve its position by providing the best service to the
customer.
Innovation Funnel to Madgex
The main aim of the product development is to innovate new process of developing
services for the potential customers. That's why start-ups are beneficial for the evolution of the
innovation process. Innovation to funnel and also makes the different opportunities and goals. It
also helps to discover the long term goals and better form of service goals (Hou and et.al., 2018).
Innovation of frugal is the kind of innovation done by the company. Overall, process has been
starts with new level of charges and goals. Development funnels provides a graphic structure for
thinking about the generation and screening
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Managing the development funnel involves three very different tasks or challenges. The
main purpose of funnel innovation is to shape new creative shape of idea. This process involves
basically three types of supporting steps strategic thinking, concept, plan, develop, quality,
launch and lifestyle (Hou and et.al., 2018). Developing innovation funnel or an idea for the
company will help to encourage the company reputation and goodwill in the market.
Frugal innovation or engineering the process of reducing and complexity and cost of a
good and its production (Hou and et.al., 2018).
For example, there are total 200 shares at the price of £22.12 on June 2018 so that total
amount for these shares are £4,424.00. On November 2018 each share has been sold on the price
of £29.31 for return of £5,862 and with profit of £1,438. ROT for Madgex Ltd. For 33%
(£1,438/4,428) = £1,125.
P4 Explanation of Frugal innovation developments and examples
Frugal innovations is a procedure which reveals new business models, put together value
chains & redeveloped process of products to serve the best possible results by users who facing
intense cost effective restraint in a scalable and sustainability manner. Apart from that, frugal
innovation as is exercised in growing markets intentionally targets the bottom in order to
evaluate the long term growth and implementing developing task (Hou and et.al., 2018)). Apart
from that, it discovers the new major challenging task to perform and major goal effective
process. The opportunity perceived the new basic needs and goals.
Some examples of frugal innovations are the development of a waterwheel, in which
containers that have wheels are used to carry and transport water to different parts of rural areas.
This has helped people in villages to get less tired and complete their chores without much issue.
There has been another innovation, where in projectors for schools were prepared with the help
of a torch, lunch box and a phone. This is cost efficient and helps in presenting students with
information in an effective manner (Saha, Dahiya and Sarkar, 2016). While Mozilla Firefox OS
created a $25 smartphone, that can be afforded by many citizens. They were able to develop
their smartphone within 6 months, that too with good features and flexibility. People all across
certain countries have access to the internet, which has led to increase in overall development.
Frugal innovation has been adopted in Africa as well, by creating low cost solar lighting.
Local entrepreneurs have come together to create an innovation so that they are able to decrease
environmental damage. They have used technologies and strategies that helped them in
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researching methods through which creation of solar lighting could be done. This has given
opportunities to many individuals as there is a reduction in complexity of production (Hossain,
2018). Africa has also created solutions for mobile banking, by providing access to services such
as money transfers, deposits and withdrawals. Frugal innovation has significantly helped many
countries in creating solutions for various problems, with minimum resources.
P5 Importance of commercial funnel and application of new product development of innovation
commercialisation
Commercial funnel is used as a marketing strategy in which, buying process of products
or services of Madgex Ltd. It gives a reflection of how buyers go on a journey for the purpose of
purchasing. It is also known as commercialisation, as new ideas are being provided to the general
public (Dhewanto and Sohal, 2015). This includes production, distribution, marketing, sales and
customer support services. It also helps organisations to attract customers and analyse their
buying pattern, so that they can create products according to preferences of consumers.
Commercial funnel is divided into different segments which is called a phase. This is considered
to be important as it helps in attracting new customers, so that revenues can be increased. It also
aids in analysing how many individuals purchase their products or services, and how many do
not. This allows organisations in creating new strategies so that they can provide facilities in an
effective and efficient manner (Collyer, 2017). Management of Madgex Ltd will be able to
evaluate performance of organisation, tweak any issues that have been determined and make
improvements so that sales are increased.
New product development or NPD is the process of creating a new product through
various steps such as conceptualization, designing, developing and marketing. The main purpose
of NPD is to create, keep & raise the market share of Madgex Ltd. This is done through proper
research of market, which helps in making best services for customers. The first step is
generating, in which management conducts analysis, so that they are able to ascertain
competition and returns on investments. The next step is screening, in which ideas are assessed,
so that decisions can be made with regard to continuing with the idea or dropping it (8 Steps of
New Product Development | Marketing Before Introduction, 2018). After that, concept is tested,
so that they are able to identify whether or not the product s or services will be successful. Step
four consists of business analytics, in which forecasting of sales is done (Atkinson and et.al.,
2015). There is also a marketability test done, in which beta versions are monitored to check
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their performance. Finally, product development is done, so that manufacturing processes can
begin.
P 6 Build an Innovation Business Case for an organisation, including ways to access funding.
The business case is a term which means a tool that ensures that an investment is justified
in terms of the strategic direction of a company & the benefits it provides. It basically gives
organisation contexts, costs, benefits & a collection of option key decision makers & funders.
Moreover, it is essential that business proposal or model that is made must support the broad
aims & objectives of the company. Following is the business case of Madgex Ltd which is
looking to innovate the best Cyber security software (Charles Jr, Schmidheiny and Watts,
2017).
Executive summary :- Madgex Ltd company deals in IT sector operations and functions and is a
small sector based organisation located at UK. It is a private limited company , incorporated on
24th October 2000. The CEO is Jonathan Austin and as the owner of various businesses he
wanted to create a true measure of workplace. For this the first step he took was to develop a
world class methodology.
Finance :- finance refers to the amount that the company will invest in its new project i.e. Cyber
security software. The overall cost that will be required from starting of a project till its
launching all comes under finance. Further, the finance function will be interested in the first
half of the project of Madgex Ltd.
To have access to funds the business must follow the following step i.e. to begin they
must first acquire different innovative tools and then only the process must start of building a
business case. Basically the need is to create an information of the project to its corresponding
base. It has been determined that business case is created to assist company's decision makers to
make sure that; the Cyber security software will have worth & absolute high status as compared
to alternative initiatives according to the purposes. Moreover, a well defines business case report
carry self-confidence & answer-ability into the fields of making investment related d decisions.
Further, there is a section in a business cases i.e. scope, impact and interdependencies that
describes the work required to deliver the objectives of the business & finds those functions that
are influenced by the project. Steps involved in making a business case are :
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 Identification of the business problem :- business projects are not created only for sake,
they have a goal and they are initiated to resolve business issues. Therefore, Madgex Ltd
first step is to find what problem is and describe it.
 Find alternative solution :- it is necessary for Madgex Ltd to choose the appropriate
solution for their defined problem (Bohnsack, Pinkse and Kolk, 2014.).
 Recommend a preferred solution :- the next step the company is required to do is to rank
the solutions, and once numbers have been added, the best solution to their problem will
become evident.
 Describe the implementation approach :- under this step the company is supposed to
convince its stakeholders about the best way the company has to implement a process to
achieve their goals. This states that, when an organisation place the work on a strong
business case then it allows the sponsors on board to have a clear vision as to how to
ensure delivery of the benefits of the business.
P7 Evaluation of various tools used in an organisation for developing, retaining and protecting
knowledge and intellectual property
Medgex Ltd is a IT company and can come across many intellectual property issues.
These include patents, trademarks and copyrights (Drahos, 2016). It is important for them to
evaluate different tools that can be used, so that they are able to develop, retain and protect it.
Patents, Trademarks and copyrights
This is known as the designs that have been created and is used for protecting inventions
and make improvements in old products as well. Medgex Ltd can apply for patent as they will
be able to protect themselves from any issues that may occur in the future. It can provide rights
to the owners of company and will also help in preventing other 3rd parties from misusing their
invention.
Non disclosure agreement
This written agreement includes a promise which states that all information that has been
gathered by individuals that have been working at Medgex Ltd, will not share it with any 3rd
party and if they do, severe action will be taken against them (Bettig, 2018). With the help of a
non disclosure agreement, organisation can protect their patent and file cases against someone
that exploits it.
Non compete agreement
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Non compete agreement is a written agreement in which employees are prevented from
taking or using business ideas in the organisation, where they have worked in (3 Legal Tools to
Help Protect Your Intellectual Property, 2018). Medgex Ltd can use this tool, so that workers
that try to steal ideas can be caught and action can be taken against them.
Work for hire agreement
Work for hire agreement is another tool that can be used by Medgex Ltd, as they will be
able to protect their intellectual rights (Chirico and et.al., 2018). In this, owners bring in
individuals for the purpose of developing products for the company, but they will not be
considered the creators.
CONCLUSION
This assignment can conclude that innovation can help organisations in creating new
products and services for customers as well as increase their sales. It is important as it allows
business persons to gain new ideas for the organisation. Visions, leaderships, culture and team
work at Medgex Ltd has helped them in creating new innovations and commercialisation of
services. Innovation has paradigm, product, position and process, which is adopted by Medgex
Ltd. They have used frugal innovation to create their new services for customers. It is important
to use commercial funnel as it helps in development of new products. There are different tools
such as agreements, so that Medgex Ltd can protect their intellectual property.
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